He receives personal investments, calls them "donations" so there is no tax, uses those investments to buy equipment to make a profit, then passes on the profit to the investors as dividends, which he also calls "donations" so there is no tax. You must invest (or offer free services like advertising) to get the dividends. "Donations" are just a word he introduced to scam the system.
I can only say that I came to the same conclusion, just to add something:
People try all kinds of schemes to avoid paying taxes. The IRS has seen it all.
DISCLAIMER: NASTYFANS SEATS ARE NOT SECURITIES AND NASTYFANS GIVES NO PROMISE OF PROFIT
Did that just pop up when he last edited the thread a couple days ago?

The investigation has been started in the "Investigations" section, under "Scam Accusations".